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by 8/25/2000 10:50 AM
Stocks quoted in this article:
4Kids Entertainment (KIDE 20-13/16) is primarily responsible for the indefatigable Pokemon craze, as the company derives around 80 percent of its revenue from the licensing rights to the "pocket monsters" and other personalities and characters. Toy company Hasbro (HAS 11-3/4) accounts for 40 percent of KIDE's sales.

Throughout the last week of July, KIDE shares plummeted almost 50 percent, breaching its daily and weekly moving-average trendlines in the process. The stock has recovered slightly but has been consolidating in the 19-21 area since the beginning of this month.

This morning, KIDE is enjoying a nearly six-percent gain. This was spurred by news that the stock will replace Seitel (SEI - 14-1/2) in the S&P Small Cap 600 Index. The shares have advanced beyond their 10-day and 20-day moving averages, but they remain below all intermediate-term and long-term trendlines.
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by 8/25/2000 10:50 AM
Stocks quoted in this article:
After yesterday's close, Mandalay Resort Group (MBG 26-7/8) reported second-quarter earnings of 50 cents per share, three cents ahead of expectations. The stock is up only fractionally in response, but this modest gain is good enough for a new three-year high. MBG has been steadily working its way higher over the past five months. Since its mid-March lows, the equity has more than doubled in value.

Despite the equity's consistent rally, its short-interest ratio amounts to 8.2 times the stock's average daily volume. In other words, short interest represents over eight trading days of potential buying power should these short-interest players decide to cover their positions. Such a short-covering rally could occur if MBG maintains its upward trajectory. <
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by 8/25/2000 10:49 AM
Stocks quoted in this article:
Level Three Communications (LVLT 76-15/16) is up over four percent in mid-morning trading after a major brokerage firm upgraded the stock from a "buy" to a "strong buy." The stock has been heating up over the past few days. From its intraday low on August 17, LVLT has appreciated by 32 percent.

This price action has taken the stock right up to its declining 20-week moving average. The shares have not managed a close above this trendline since March 31. In addition, the security is attempting to overtake its 20-month moving average, which it closed below last month.

Option activity on LVLT is beginning to pick up steam this morning with the bulk of the action coming on the call side. The busiest option so far is the September 85 call with 681 contracts in volume. <
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by 8/25/2000 10:02 AM
Stocks quoted in this article:
After Thursday's close, Puma Technology (PUMA 21-1/8) posted a fourth-quarter loss of eight cents per share, which was three cents per share ahead of Street estimates. This morning, though, the security opened 2-1/16 points in negative territory, falling back below its 10-week and 20-month moving averages. Currently, the equity has declined by more than 10 percent.

In anticipation of this earnings announcement, PUMA surged almost three points, or nearly 14 percent, higher yesterday to end up at its top closing level since July 21 on above-average volume. It was the shares' sixth consecutive winning session.

PUMA remains relatively anonymous on Wall Street, according to Zacks Online. There are only six brokers now covering the stock. Any new positive coverage as a result of the company's positive earnings surprise could give the equity an additional boost over the short term. Any downgrades, though, might hinder the stock's prospects.


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by 8/25/2000 9:39 AM
Stocks quoted in this article:
Sycamore Networks (SCMR 155-5/16) reported after Thursday's closing bell that its fourth-quarter earnings came in at eight cents per share, topping analysts' expectations of six cents per share. The stock retreated by almost two points yesterday in front of the earnings announcement, as it continued to consolidate into its 10-day moving average.

Despite this positive earnings surprise, SCMR gapped 6-1/2 points lower at this morning's open. This downturn sent the shares beneath their ascending 10-day moving average, which they last finished a session lower than on August 3. This technology issue is currently in the red by about three points.

Peak front-month call open interest on SCMR resides overhead at the September 160 strike. In addition, the second largest site of front-month call open interest is resting at the September 165 strike. These two levels could provide options-related resistance to any near-term rally attempts by the security.


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